What is [REDACTED] Cartel and the BTRFLY token?

Jan 13, 2022 | Community Guides

“In ███ theory, with the butterfly effect, ████████████████████ a small change █████████████████████████████████ can result in large differences █████”

Unless you have been living under a rock you will have noticed a lot of this: “█████ something, something, cryptic messages █████” floating around.

By “rock”, I mean neglecting DeFi in favour of leverage trading on a centralised exchange like it’s 2017 (give it up anon, there is a new sheriff in town).

I can confirm your device is not broken and these redacted messages are in fact, an extremely intriguing marketing tool used by one of the most promising projects in DeFi and it is almost sure to be the golden child of ‘22.

That project sers and lady-sers is [REDACTED] Cartel and the BTRFLY token.

What is the [REDACTED] Cartel and the BTRFLY token?

Not so fast… before we get into it, we need to understand the current landscape, the problems and why (potentially) [REDACTED] Cartel is the solution…

What are the Curve Wars? 

By now, even my wife’s boyfriend knows about the Curve Wars. They are entering the public psyche just as the layer 1 rotation narrative swept the later part of 2021. However, if you can’t be arsed to read the same old half-baked synopsis about the CRV wars then you can skip this section (although you might learn a few things).

For the uninitiated, Curve started out primarily as a DEX for stable swaps. The idea was to provide traders with a platform where they could reliably trade like-for-like assets (USDC, USDT, DAI etc.) at extremely low slippage and low fees.

Why would people want to do this? 

Stablecoins make up 4 of the top 20 cryptocurrencies by market cap and I can see this trend increasing.

As new opportunities emerge in DeFi, there is an ever-increasing demand for a variety of stablecoins, whether that be for liquidity provision, yield farming, lending/borrowing or even just general day to day trading. There is extreme utility here which results in high demand and large trading volume.

So, with this in mind, Curve was created to enable the most efficient and optimal experience to facilitate this budding area of our industry.

How does Curve achieve this? 

Well, with any market, deep liquidity lends itself well to a greater trading experience (just ask all those with a wallet full of illiquid jpegs right now), and Curve trumps any other protocol in DeFi (not just DEX’s) by total value locked (TVL) by nearly 3x. Curve currently sits at around $23bn across multiple chains, and the next leading DEX, Uniswap, has only around $8bn TVL. Is this mainly due to Uniswap being at the whims of the Ethereum Foundation? That is a conversation for another day…

As a side note, Curve has begun to expand their pools to include “like for like” assets particularly with wrapped and derivative assets such as renBTC/BTC, and even a Tricrypto pool consisting of USDT, BTC and ETH. As soon as V2 factory pools are rolled out fully, it could be game over.

Curve also has an ever-expanding set of pools they can choose to deploy (if voted for by the DAO), which is a reasonably untouched trump card they could (and probably will) play, at some point.

Info – https://defillama.com/protocols/dexes

Anyway, if you have ever used a DEX you probably understand that you are effectively trading one asset for another, out of a collective pool of those said assets.

In short, liquidity providers (LPs) will deposit equal amounts of Token A and Token B into the pool which then allows traders to come to this pool and trade out of it.

Image from Uniswap docs 

If the pool has low liquidity, then traders will face what is known as slippage: the price you expect to receive, versus the price you will get. A larger margin of error usually is a result of low liquidity and high volatility trading periods.

So, the aim of the game is to generate pools that are super deep and packed with tokens, so that anyone at any time can come to the pool and trade knowing that they are getting the best price possible.

Imagine, you are a fat whale sitting in USDC and you need to (for whatever reason) trade for another stablecoin, say… MIM.

To minimise any chance of slippage, you are going to go where 1) the fees are cheapest since a portion of the traded amount is deducted for LPs (Uniswap is 0.3% and Curve 0.04%…), and 2) where there is the deepest liquidity. Ideally, this has to be as close to 1:1 as possible.

Now the tricky part… despite on-chain liquidity increasing across the board as users become more and more educated and comfortable with the process, there is still only a dynamic-yet-soft cap of those wishing to provide liquidity.

This ever-changing ceiling of how much liquidity is in the DeFi machine is extremely valuable and potentially the most scarce asset in the whole space.

You can see where this is going…

DEX’s need liquidity to draw users to the platform to then earn fees and be a sustainable business.

So, if liquidity is the kicker, how do you attract and then maintain it?

“Show me the incentive and I’ll show you the outcome” – Evil Charlie Munger.

The CRV governance token plays a very large role in this game: users can lock their CRV for vote escrowed-CRV aka veCRV.

The way this works is that users can lock up for a designated amount of time and earn a 50% share of each trading fee proportional to their locked amount and their lock-up duration.

The larger the amount of CRV, and the longer the lock-up, the more handsome the rewards are each week. I know a lot of people who go for the 4-year lock up, and I, myself, can’t see Curve going anywhere during that time, so it could be a very wise move indeed.

Right, so why would you want to lock your CRV away? 

We have already established you earn a proportion of all reading fees from the platform, but to be honest, that isn’t going to be a life-changing APR (Annual percentage return)… or is it?!

veCRV holders are the gatekeepers for DeFi liquidity. Why?

Well, The Curve DAO (veCRV holders) vote each week on where the next set of CRV emissions will be directed i.e. to which liquidity pools. This is called Gauge Weights.

So, getting back to our point about liquidity- Curve, in order to encourage users to provide liquidity to a specific pool, will use CRV emissions as an incentive.

LPs will receive their share of the standard trading fees, but if they are smart, they also lock CRV for as long as possible and vote for the next round of emissions to be directed to the pool they are providing liquidity to.

Source: https://medium.com/coinmonks/convex-curve-curve-d7e28cd6c1d9 

Well, it turns out a lot of people are smart and are doing just that.

MIM as a Curve Case Study. 

If we use MIM as a case study we can see how the Curve machine happens in action (I think I can make it idiot proof… we will see anyway… I speak to a lot of you regularly so…)

Magic Internet Money or MIM, is an algorithmic stablecoin pegged to the US dollar. It is backed by a basket of interest-bearing assets. Effectively users who go to the Abracadabra platform deposit various assets and in return can borrow an amount of MIM.

The beauty of Abracadabra and MIM is that the assets you deposit into the “Cauldron” to borrow MIM against are all interest-bearing and hence are repaying their loan just by sitting there…

I have a full guide to this here if you are interested…

Back to the point:- for MIM to remain pegged to the dollar, there needs to be increasing utility and also more importantly extremely deep liquidity. The reason for that is, that MIM is minted (new MIM released) and burned (taken off the market) to maintain its dollar peg, hence algo-stablecoin. Adjacent to that, there is a pool on Curve called the MIM3CRV, which consists of USDC, USDT, DAI and MIM.

Ensuring deep liquidity for MIM by pairing it to other stablecoins such as USDC, USDT, DAI etc. provide a low slippage trading environment so if any whale comes along and sells a shit load of MIM it doesn’t affect the price of the asset and take it off-peg.

So, in short, deep liquidity is vital.

If you have been following closely you will now see that Dani Sesta and the team will require liquidity providers to ensure that the MIM3CRV pool is stacked full of assets to ensure minimal slippage and to remove and the chance of de-pegging, as well as ensuring MIM becomes the *most liquid* stablecoin across ALL CHAINS.

So, to do this they could buy up a lot of CRV, lock it for 4 years, and then sway the vote to ensure that the majority of emissions are going towards the MIM3Pool.

Sounds simple and this is what is happening, in a roundabout way… but they aren’t the only team who require deep liquidity for their product (you can see where this is going)…

So, the Curve Wars ensues: those controlling the veCRV vote, control the emissions, which results in deeper liquidity for their product.

I wish I could tell you it stops there but this is just the beginning.

Info – https://dao.curve.fi/gaugeweight 

What you are looking at here is the next proposed “gauge weight”. So, as I mentioned earlier these are the collective veCRV votes (based on the amount and lock-up duration) and this will decide where the next set of CRV emissions will end up i.e. which pools will receive the lion’s share.

MIM3CRVpool has been receiving a large share of the CRV emissions for a while now, and this has contributed to the increased liquidity, stability and success of this new algorithmic stablecoin.

So, did Dani and the team just buy a lot of CRV and lock it? Well, that would be one way to do it. However, a more cost-effective way to ensure the incentives are steered in the right direction is to bribe veCRV holders individually, or better yet, the largest holder of veCRV…

In comes Convex…

What is Convex and what role does it play in the Curve Wars?

I could spend a full day talking about the dynamic between CRV and CVX. In fact, I did want to write about Convex in May/June time, but at the time (for whatever reason) I didn’t think their team was very open to the idea. However at this point, it is critical to talk about the project here, so in short:

Convex allows LPs to deposit through Convex and receive the boosted CRV rewards as if they had locked their CRV for veCRV. They still use Curve on the back end, but they enable the boosted rewards through their platform’s ridiculous amount of locked CRV.

On top of that, users who deposit their Curve LPs through Convex also receive CVX through their liquidity mining campaign. So overall a much tastier yield than through Curve directly.

The Convex platform also allows users to directly stake their CRV on their site and in return receive cvxCRV. This cvxCRV generated is liquid, unlike veCRV. This means if a user locks their CRV with Convex they can retrieve their CRV by trading cvxCRV at a 1:1 ratio on the Curve DEX, so long as it holds its peg… it is better not to talk about things you don’t want to happen.

cvxCRV holders can then stake to earn their normal veCRV rewards (50% of trading fees), Convex platform revenue fees, airdrops (EPS etc.) and additional CVX on top… so, again a very juicy strategy compared to regular veCRV lockers.

Why is this important? Well, over the past 6-8 months Convex has amassed a shit tonne of CRV; orders of magnitude more than any other single entity. And because of this, the voting rights of Convex on the Curve gauge emissions are particularly huge…

“Other” in these figures is effectively the REST OF THE MARKET…

So when you come to your senses and deposit your CRV into Convex in return for cvxCRV, on the back end you are effectively perpetually locking up your CRV. Forever…

Yes, you can trade cvxCRV for CRV (so don’t worry), but your tokens as you knew them are effectively locked into the Convex machine for good.

With Convex effectively now holdings around 40-50% of the veCRV, they call the shots. Luckily this isn’t a dictatorship and those who lock their CVX (vlCVX) get a say in the matter. Those who lock their CVX for a minimum of 16 weeks and 3 days will receive platform fees and voting rights…

As always, everything gets gamed and this has led to a leveraged play on swaying the Curve votes. Protocols wishing to direct liquidity through CRV incentives are simply scooping up as much CVX as possible to then vote (with a majority say) over where said rewards will end up.

Of the 33,183,519 of locked CVX, there is 172,988,129 cvxCRV (which remember is a derivative of veCRV)… effectively meaning for every locked CVX, there is around 5.2 veCRV in voting…

Feel free to check my math, as I am a smooth brain.

Source: https://dune.xyz/Marcov/Convex-Finance

So… this is where the leveraged voting idea comes into play. If you can have around 5x the veCRV voting power from locking CVX, why wouldn’t you? Particularly if you are a protocol that has a vested interest in maintaining a large say in the Curve gauge.

I mean, take a look at some of the familiar faces here. The vast majority have a huge incentive to uphold liquidity, and the way they do that is by acquiring CVX, locking it, and then voting on their favoured pools on Curve.

It is pretty damn clever…

How do Curve and Convex Bribes Work? – 

I haven’t even mentioned bribes yet, which are effectively how a lot of the revenue on Convex is generated.

Andre Cronje created bribe.crv.finance as a way for protocols wishing to bribe veCRV holders into voting for their pool when the next series of emissions are released. Protocols can put up a set amount of their native token (i.e. SPELL) to encourage veCRV holders to vote in favour of the MIM pool. This way, veCRV holders who vote for the MIM pool are paid on top of their regular rewards in SPELL, for example.

Can you guess what happened next… yup; Convex have their own voting platform, which enables the same bribing mechanism for its locked CVX holders.


So, as you can see, a recent partnership between Frax and Convex has led to these rounds of voting being heavily incentivised by the Frax team. Over $7m in FXS will be used to incentivise vlCVX holders to delegate their vote in favour of the frax pool…

So, this is all big business. These incentives are available every 10 days or so, with new protocols coming into this space. They want to bribe their way to sufficient liquidity and also, as a passive income strategy, generate huge CRV emissions for their own protocol owned liquidity.

WTF is the Flywheel effect? 

Another buzzword loved by all those who are invested in this ecosystem is the Flywheel Effect. As a successful business or protocol begins to gain traction, the Flywheel begins to move at a faster and faster rate, drumming up more and more success as it goes.

These small additions to the Curve ecosystem that developed along the way have led to an industry-wide fight to control the Curve liquidity machine and, consequently, the emissions.

And that, is a perfect segway into the whole reason you are here in the first place: [REDACTED] Cartel and BTRFLY.

So, I’ll ask again… What is [REDACTED] Cartel and the BTRFLY token?

I watched some TEDTalk when I was 18 and it told me timing in business is everything, so naturally, I tend to believe this even 10 years on. It rings true here in the case of [REDACTED] Cartel – coming off the back of Olympus DAO-fork-mania and now entering Curve Wars.

Maybe a protocol that can absorb both of these narratives could be on to something?

Saying Redacted is another Olympus-fork would be the understatement of the year, and yes, I appreciate we are only in January but… you know what I mean.

Yes, they use a bonding mechanism to mint new BTRFLY from the treasury and yes, there is a very very tasty APY of around 180,000% APY… but unlike the other 5490284 forks out there, that is where the comparisons stop.

We are all now well versed in how this all works following the past 6 months of “another dayanother fork”. I mean even the word “fork” has come to just mean an Olympus fork, ffs.

Users can bond specific tokens in return for discounted BTRFLY. These bonded tokens then go to bolster the Redacted treasury, turning over a profit and allowing the APY to maintain high as they share the spoils with all their BTRFLY stakers (xBTRFLY).

As you can see, currently there are 3 options to bond. CRV, CVX and BTRFLY-OHM LP.

It doesn’t take a genius to work out that currently if you bonded CRV you would be paying a premium… Why is this? Well, during their recent dutch auction IDO, the treasury sucked up 5,530,727 CRV ($22,586,230) along with 790,665 CVX ($28,384,880) and 57,482 OHM ($22,296,850), collectively raising $73,318,24.

(Thanks, _funkyjunky for helping me recently understand this aspect of the project.)

The bond price of each asset is consistently decreasing over time. If a large amount of CRV bonds come in, the discount converges closer to zero or even in to bonding premium (cheaper to buy on the market) if a whale comes along.

As new BTRFLY is minted from the profit of these bonds,  contributing to inflation and the APY, this bonding mechanismincentivises bonding for *specific assets* when needed, and disincentivises when the risk of inflation becomes too high.

Which makes sense to me… a little…

The treasury has since grown to $138,542,930 with a total market cap of $591,154,070 with a treasury to market cap ratio of 0.234.

Treasury distribution by assets –

Coming straight out of the gates the treasury was put to work and had the following as their immediate strategy:

You can also follow the treasury wallet HERE.

So, now you know the inner workings of the machine you can see how the Redacted strategy of absorbing as much CRV and CVX has been and will be, so beneficial.

75% of their CVX has gone to locked CVX (vlCVX) which will earn tasty bribes from those wishing to sway the Curve voting whilst also adding liquidity to the cvxCRV: CRV pool to help ensure the 1:1 peg. After all, this has to be a mutually beneficial bolt-on to this already thriving ecosystem, and if people can’t reclaim their CRV from cvxCRV, things could get ugly.

So what is the point of all this?

Is it to create a treasury that prints fat bags and then can keep the underlying value of the BTRFLY token upright?

Well, yes absolutely and no, not at all…

Obviously, the treasury gives inherent value to BTRFLY stakers, that goes without saying. It generates a runway, allows APY to stay high and gives a risk-free value per BTRFLY.

But… Redacted and the BTRFLY token are aiming to be (and achieving already) a meta-governance token. Think about some of the largest index/funds/asset managers in the world, Vanguard, Blackrock etc. all have an influential seat at some of the worlds best companies, period.

These large funds have to keep their investors (we call them communities) happy and to do so they have to act in a way that, if we are honest about it, keeps the profit machine turning.

So, if Redacted can (for lack of a better word) infiltrate the most promising and profitable projects in DeFi, relay the value accrual back to xBTRFLY holders, then this DAO could be one of the most powerful forces we have seen yet.

Does the phrase “own nothing and control everything” apply here? I am not sure, but it sounds cool, so I am going to write it anyway…

The [Redacted] DAO is already the 4th largest CVX holder in less than a month, their CRV holdings are around $28m (1.6%) of the current market cap. This doesn’t even begin to mention their OHM holdings.

Info: https://daocvx.com/leaderboard/

The balance sheet for Redacted Cartel is FAT and is only 1 month old. If they continue to soak up the most influential governance tokens in this industry and have a seat at each table, then I can see this becoming an extremely successful project.

I can see what is going to happen already. Redacted forks (or additional layers on top of BTRFLY) will seek to implement this strategy and go to war some more.

The Ultimate Leveraged Voting Strategy – Meta-Governance. 

So, what happens in a few months down the line when Redacted has the largest collective share of all governance tokens? Similar to how Convex can act as a leverage voting strategy for Curve emissions, BTRFLY will act as a proxy to any, and all, influential governance votes. The real beauty is that if this plays out the way I think it will, BTFLY is extremely liquid in comparison to veCRV and vlCVX.

On top of that, projects may not need to consistently over-bribe veCRV and vlCVX holders any more than they need to. They could simply stake xBTRFLY (hopefully this becomes a short locking period at some point), and then vote on the governance proposal in which they have a vested interest. This may be Curve, Convex, Frax, Olympus, Dopex. Who knows what the future holds?

Just keep an eye on this BTRFLY effect…… wen veBTRFLY?

Making Waves – 

My criticism of DAOs previously is that they can often be too slow to act. This isn’t the case here. In around 3 weeks, the DAO has put forward a series of super bullish proposals that put the foundations in place for them to act on new emerging narratives aside from the Curve wars.

Dopex SSOV strategy –

Around 60 gOHM were used in an options strategy on Dopex to build a further collaborative network with one of the best and undervalued projects in the space. Oh, and to turn a profit for the treasury, of course.

Bonding for FXS – 

Another extremely influential project in this space is Frax. The leader is a Giga brain and their product is awesome (I will cover Frax soon). A proposal was passed last week that the treasury will start bonding FXS to help grow a fat stack of FXS and this couldn’t have happened at a better time with the latest developments happening on Convex…

Basically, until now, the only token you could lock in Convex was obviously CRV. That has since changed. Convex is going ahead with their cvxFXS product, which will naturally cause a huge influx of FXS to the platform and enable them to have large voting say in what the future of Frax looks like.

So… with this in mind, Redacted will also take in a lot of FXS in return for discounted BTRFLY and given their previous cvxCRV strategy, I think something similar will follow for the treasuries FXS.

Participation in Curvance Seed Stage – 

When you network and you have a fat stack of cash, you can often get invited for allocation to seed sale (don’t worry, we peasants need not concern ourselves with this).

Curvance is a yet to be released protocol which is seeking to take those interest-bearing assets such as cvxCRV, yvCRV, cvxFXS etc and use them to borrow against.

So with the treasury holding a large portion of these assets, it would make sense for them to borrow against it with a reasonable LTV (loan to value) in a stablecoin they then put to further use.

What is even better is that the treasury could own 1% of the total protocol by investing in Curvance pre-sale with funds from the treasury. If it hits $1bn and the team owns 1%, then it’s gonna be a nice return on investment.

The added benefit of being an active user in your own investment is also an extremely mutually beneficial relationship, imo.

Votemak Acquisition –

When I say the team moves fast, I mean faaaaaast. Already they have acquired one of the potential next influential tools in this whole space.

Now that you are a pro and understand how bribes work, Votemak is stepping up to be the bribing service that will facilitate the next inevitable battle that will soon be all the rage: the TOKE Wars.

(Sometimes in this space, you can just meme things into existence.)

From their latest round of bribes, Votemak TOKE holders received over $130,000 from just over $2m in bribes from all the projects looking to get their own Toke reactor.

The acquisition cost around $1m in wxBTRFLY which will be vested for a year. I think this is a very smart move.

If (and when) Redacted decides to bond TOKE, then they are in a prime position to be the leader in the TOKE wars and also have the bribing service under their acquisition and hence won’t pay any fees etc.

There might have been some serious alpha dropped in one of the recent community calls with Sami and the team… If I heard correctly, with the 5% fee that Votemak charges on all bribes (from projects) they will use 2.5% to boost the treasury whilst BTRFLY stakers would potentially receive the rest… gimme that.

Smart move sers.

(There are loads more proposals live and very actively managed, contested and updated HERE. )

What is Redacted Cartels connection to New Order DAO – 

In short, New Order owns 10% of the vested pre-sale supply (not the total supply…). Looking beyond that, New Order is effectively creating a Y-Combinator for DeFi which then can feed the projects into the hands of the Cartel… (that sounded malicious but it didn’t mean to be haha.)

What I will say is with the team overlap between the Redacted and New Order, it is pretty obvious to see who would be first in line if an incubated project brings some value to the current and future narratives. Boolish

What is the BTRFLY token? 

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So as I mentioned early the BTRFLY token came into the market with one of the smoothest token generation events I have been a part of. They used a dutch auction to bond CRV, CVX and OHM into their treasury.

To stake just simply hit approve and then hit max and stake… These are 2 transactions. 

The APY is currently at 193,814.39% annually with around 10.93% ROI every 5-days. An epoch is a stand

The BTRFLY token with a lot of rebase tokens allows access to the Redacted Cartel DAO. The difference being Redacted are actually using their treasury in a productive way so this coupled to the risk-free value of the token gives it a very healthy future.

I have mentioned the pitfalls of standard copypasta OHM forks previously and will be released a full article on this soon. But, in short, if you are playing the casino game and slurping tasty APY and that is the be-all and end-all of the project, it’s going to last a few weeks at best.

The utilisation of the treasury is the most fundamentally important aspect of this whole thing. A brief checklist:

  1. Are the team Giga brains or smol brains?

  2. Is there a near, medium and long term roadmap (a bit of a meme)?

  3. More importantly, are they executing it?

  4. Are they thinking BIG?

If any one of these points is missing, it won’t stand the test of time.

The token is natively deployed on Ethereum layer 1, although with time and the fact that there is already a wrapper, I wouldn’t be surprised to see this on other chains soon enough.

There is a proposal to partner with another project on Fantom, which I will leave for you to discover in their Discord (I can’t do it all for you, AKA this is alpha. I wanted to keep but also I’d feel bad not sharing).

Also, from what I have heard on the grapevine, there may also be something in the works for Arbitrum… This is the alpha you get from listening to community calls in the Redacted Discord.

Anyway, given the current strategies and the fast-moving pace of the DAO, I believe the BTRFLY token will do extre…

-Yes, that is not a typo. We need to address something. People need to stop looking at the native price of a rebase token. Please refer to the market cap of ALL rebase projects-

The price WILL go down over time, it is designed to. But, as the dilution happens, you also hold a relative amount of the project’s market cap compared to your staked BTRFLY.I mean, Coingecko defaults to market cap to make it easier for the apes but people are consistently worrying about the price of the native asset. Stop being silly… please.

Who are the Redacted Cartel team? 

From being in their discord prior to the liquidity-bootstrapping event, the main contributors from what I can tell are pretty much public-facing and are doxxed to an extent… 0xSami, @RealKinando and _funkyjunky have been leading the charge.

I spoke with Sami recently and it’s always refreshing to speak with founders with such a huge vision and also their feet firmly planted on the ground.

The team also has a strong cross-over with New Order DAO (which I will cover in its own article). This, in short, is aiming to be a Y-Combinator for the DeFi space and I have to say they did a pretty damn good job incubating Redacted Cartel.

This project is categorised as an Olympus sub-DAO. What does that mean then? Well, this effectively allows Redacted to build on the wealth of experience and talent that Olympus has brought to the table over the past year or so.

There are some kickbacks to the Olympus treasury from certain aspects of the protocol, but from what I can tell they seem to be very mutually beneficial.

On top of this, the connection with Olympus has enabled further connections to industry Giga chads such as Tetranode and all the fingers he has in multiple pies across this space (which all seem to be performing extremely well, I might add).

Personal Thoughts on the Future of Redacted Cartel

If you hadn’t guessed by now I have a position staked. What these guys are doing is special. They are going to succeed, I do not doubt that. What success looks like for any form of rebase project is still to be discovered but I’d say that the likes of Olympus and Wonderland have shown what is doable.

What I love more than anything is the fast pace. If you are not vocal or making moves, as much as I hate it, people get bored and over-rotate. You have to move quickly, particularly with a DAO. Those that sit around on a community call for weeks on end not utilising their treasury while waiting for the perfect opportunity to come around will fade out of existence, or continue to get front-ran by other projects, or whales.

The industry connections are also vital. Whether that be pre/seed sale connection to projects that can be mutually beneficial to Redacted or to further integrate with successful protocols going forward such as Dopex, Tokemak, Ribbon etc. I think the network is strong and will be a very important tool to Redacted’s success.

The team are legit and super helpful to anyone and everyone in their community Discord. This, if you have read any of my previous articles, is a huge factor for me as an investor.

Along with every other DAO, how all these strategic moves translates back to xBTRFLY holders is the obvious question for me. Does moving forward in this positive way help prop up the market cap and consequently elevate everyone’s bags in dollar-denominated terms or… is there more than that?

The transparency is there, which I really like and I appreciate. We are in the extremely early stages for this project. Maybe we will see an evolution of this treasury structure to further kickbacks from said investments on top of their rebase rewards. I think that would be cool but maybe it’s is too early to imagine such things.

The burning question is how do you continue to incentivise people to part with these governance tokens? You can increase the discount on such bonds but will this be enough to amass such an influential amount? If the treasury continues to grow from external investments as well as bonds, I’d say yes, it is. Only time will tell.

Another industry-wide concern, which isn’t limited to Redacted, is: what moves do we make to be sustainable during a bear market (which is coming, or haven’t you heard)? I am not sure if I am making this up, or if I read it somewhere, but the idea that [REDACTED] could initiate Curve stable LP bonds.

What this would do is effectively allow the treasury to create an extremely strong foundation of stable assets, protected from downturns, deploy them to Curve/Convex, use their CRV/CVX to direct the CRV emissions towards them to further bolster their treasury.

As I say, take this with a pinch of salt as I am literally an idiot.

All in all, I am super impressed with [REDACTED]. Their ability to pivot on new narratives as they emerge is critical and is their best weapon in my opinion. The best companies all over the world pivot to try new shit as it happens and by doing this don’t get left behind. Move fast and break shit.

If you are a project looking for this kind of content shoot me a message on Twitter, and I will get back to you once I filter through all the NFT projects DMimg me. 

We are also looking for the right sponsor for blocmates (aren’t we all). As always, this would have to be well aligned with our ethos and have our community’s best interest in mind. 

Thanks for reading x

[email protected] for more details. 

Redacted Cartel Resources –

Website – https://app.redactedcartel.xyz/

Twitter – https://twitter.com/redactedcartel

Discord – https://discord.gg/FKgMbjt6

How to Buy BTRFLY – https://app.sushi.com/swap?inputCurrency=0x64aa3364f17a4d01c6f1751fd97c2bd3d7e7f1d5&outputCurrency=0xc0d4ceb216b3ba9c3701b291766fdcba977cec3a

Where to Stake – https://app.redactedcartel.xyz/stake

Where to Bond – https://app.redactedcartel.xyz/bond

blocmates links –

Personal telegram – @blocmates

Personal Discord – blocmates#7027

Discord Community – https://discord.gg/blocmates
Telegram – https://t.me/+UtYbMzXmlhb6R4Xd

Email – [email protected]


  1. jkay

    Great read!

  2. jkay

    Great read!

  3. YahtzeeFish

    You da goat!

  4. YahtzeeFish

    You da goat!

  5. onkz

    Amazing article.

  6. onkz

    Amazing article.

  7. Nak Attak

    Excellent article!

    Could you explain a bit more what you mean by "the risk-free value of the token"?

    And also why "the price WILL go down over time, it is designed to. But, as the dilution happens, you also hold a relative amount of the project’s market cap compared to your staked BTRFLY"?

    I fail to understand what value I receive if I have staked BTRFLY for which the reference price goes down, so if I convert to ETH for example, wouldn´t I be losing??

  8. Nak Attak

    Excellent article!

    Could you explain a bit more what you mean by "the risk-free value of the token"?

    And also why "the price WILL go down over time, it is designed to. But, as the dilution happens, you also hold a relative amount of the project’s market cap compared to your staked BTRFLY"?

    I fail to understand what value I receive if I have staked BTRFLY for which the reference price goes down, so if I convert to ETH for example, wouldn´t I be losing??